China's coal chemical industry encounters difficulties

According to a recent survey conducted by the China Petrochemical Association, in November, the country’s methanol production was 838,000 tons, a year-on-year decline of 9.6%, and it experienced a negative monthly growth for the first time, a sharp drop of about 17% from the previous quarter.
The dimethyl ether industry is also facing serious difficulties. According to the latest survey by the Petrochemical Association, about 40.3% of the dimethyl ether plants in the country are currently discontinued, 45.8% of the devices are in limited or semi-discontinued state, and only 13.9% of the devices maintain normal production. . Dimethyl ether and methanol are two major types of coal chemical industry in China.
The survey results of the Petrochemical Association also show that some newly launched coal chemical projects have seen a significant slowdown in plant construction progress, and the proposed or planned project has been partially extended.
The Shenhua Group’s coal-to-oil project has been confirmed to be postponed and put into production. This is the world's first coal-to-oil production line built in Erdos, Inner Mongolia.
Shenhua Inner Mongolia Coal-to-liquid Project started construction in August 2004 with a designed capacity of 5 million tons. The first phase of the project plans to produce 1 million tons of oil products annually. It is a coal chemical demonstration project for the “Eleventh Five-Year” development plan of China's coal industry.
The Shenhua Group's above-mentioned coal chemical project had already been put into trial operation for several months and was originally scheduled to be put into operation by the end of 2008.
Shen Chenghao, a researcher at the Shenhua Coal-to-oil Petrochemical Research Institute, told the newspaper a week ago at the Primary Energy Forum. “At present, the project still needs a period of trial run. This time may be very long, or it may be a year. Or longer."
The sharp decline in the national oil price is one of the reasons for Shenhua's postponement of production. Ning Chenghao said that last year's study showed that the direct liquefaction of coal costs about US$45/ton. However, due to the large changes in coal prices and oil prices this year, this data has undergone great changes.

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